Effective August 1, 2023, New York State requires automobile insurance companies doing

business in the State of New York to include supplemental spousal liability coverage on their

auto policies unless the insured opts out of the coverage. Previously, this little-known coverage

was available to spouses in New York State, but one had to opt in to obtain it, including with

higher premiums likely to be paid.

Under a traditional auto insurance policy, there is no coverage available for serious injuries

suffered if the accident was caused by the spouse of the injured party. This supplemental spousal liability insurance coverage provides coverage when a spouse suffers serious injuries in an automobile accident and their spouse was at the wheel at the time of the accident and/or caused the accident.

This requirement to opt out, rather than opt in, will likely cause this supplemental spousal

liability coverage to be at issue in more and more cases, as more drivers will likely choose not to

opt out and thus, have this coverage available. The impact on both sides could be significant. For

instance, spouses often travel in the same car. If this coverage is available, a party may choose to

bring an action against their spouse who was behind the wheel and caused an accident with a

serious injury. The availability of insurance coverage for these damages is a significant

inducement for potentially bringing an action against your spouse.

Additionally, for defendants in actions, it may place insurance companies in a strange position

where their insured may want to be found liable for an automobile accident in order to allow

their spouse to recover damages under the insurance coverage and might lead to spouses working together to ultimately cause a finding of liability against the driver spouse. These are some potential scenarios which all must be aware of when handling a motor vehicle accident case when a married couple is involved.